|Criteria||From a+ to d||Project rating|
Macro Location Analysis
EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
Loan To value
Woodlawn Park Construction Ltd (the “Borrower”)
A site with planning for 2 houses at the rear of 8 Woodlawn Park, Monkstown, Co. Dublin
Total Loan: €545,000
Acquisition loan: €255,000
Development loan: €290,000
Total Asset Value
€1.050,000 (€925,000 ex VAT)
7% per annum
|Interest Payment Schedule||On Completion|
Acquire a site and develop two dormer houses
LTV (Loan To Value)
Maximum of 7 months
The Borrower is seeking to acquire the property and develop it into 2 dormer bungalows. The Property is a development site with planning for two dormer houses consisting of two bedrooms totalling 960 square feet each.
Property Bridges has compiled this report on behalf of our lenders and have taken reasonable care to ensure the information provided is authentic and accurate. Please be aware that returns are not guaranteed, and your capital is at risk. Please also note that the term is not certain and may be extended under certain circumstances. Investors should seek their own advice before investing.
The Borrower is an experienced developer who is from Ireland but has operated in the United Kingdom for the past few years and has previously delivered a number of successful residential schemes.
Property Bridges will take a first fixed charge over the Property. We will also take a charge over the shares in the company which will allow the lenders to take control and sell the properties in the event of default.
We have commissioned and received a Red Book valuation report from a leading nationwide estate agency with experienced valuers with specific experience in the commercial property market. This report determines a current open market valuation of the Property at €1,050,000. The valuation uses recent selling and letting comparisons of similar properties in similar locations to determine the value of the unit.
At a €1,050,000 valuation our security cover is nearly two times equating to a 59% Loan to Value.
Location Map: Woodlawn, Monkstown
The Property comprises of an approximately 0.06-acre site, which formerly comprised the adjoining owners garden. It comprises a greenfield site with boundaries formed by trees, shrubs, and wooden fencing.
The site with planning for the proposed development will incorporate two x 2 bedroom semi-detached, dormer bungalows comprising ground and first-floor level residential accommodation. Together with circulation, a small garden area, and 1 off-street car parking space per property.
The proposed specification will provide the following:
Our estate agent has particular regard to the sale of Lynwood, Silchester Park, in Q1 2020, which is located within close proximity of the subject. This sold for €2,775,000 which is over €4,000,000 an acre. The comparable had planning permission for 10 houses, this equates to €277,500 per plot. Our agent has considered the above comparative evidence and we have factored in the subject site is currently sale agreed at €375,000 which equates to €187,500 per plot.
The agent notes the range of 2 bedroom house sales, within the surrounding environs above broadly range between €475,000 to €600,000 with the capital values range from €547 to €756 per sq.ft.
The Property has the necessary planning permission for the use it is put to. Full planning checks are part of the Property Bridges’ legal and due diligence process.
Planning was granted by Dun Laoghaire Rathdown County Council planning reference: D16A/0648 - for two dormer bungalows with new separate vehicular entrances from Woodlawn Park.
The Property is valued at €1,050,0000 by an estate agent dated November 2020. In this instance, the estate agent has applied a value of €525,000 per property, (aggregate €1,050,000) to the two proposed dormer dwellings. This reflects their assumed good internal specification and construction standard. It also reflects their location including and the provision for an off-street car parking space etc. The agent considers the subject proposed dwellings are well within the prices as listed above in the section titled comparable.
The borrower will refinance the facility once this period expires or place the Property on an open market sale. At an LTV level of 59% we expect the borrower to be in a position to refinance the facility.
Our view is that the return offered is strong given the level of risk.
The investment is for 7 months with an estimated return of 7% per annum.
This is a small development with a short construction period required.
Planning is granted.
The site is located in the heart of Monkstown, Co. Dublin which is a popular, established and affluent area. The demand for the residential housing market in Monkstown is strong.
Our loan-to-value (LTV) rate of only 59% provides significant comfort even in the event the Property did not achieve its full asking price of €1,050,000 if there is a need to sell the property to repay the loan.